VZCZCXYZ0001
RR RUEHWEB

DE RUEHMD #1030 1451633
ZNR UUUUU ZZH
R 251633Z MAY 07
FM AMEMBASSY MADRID
TO RUEHC/SECSTATE WASHDC 2643
INFO RUEAHLC/HOMELAND SECURITY CENTER WASHINGTON DC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC

UNCLAS MADRID 001030 
 
SIPDIS 
 
SENSITVE, SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EWWT ENRG PARM PREL SP
SUBJECT: MEGAPORTS INITIATIVE: WORKING OUT THE KINKS IN 
ALGECIRAS 
 
REF: 06 MADRID 01705 
 
¶1. (SBU) Summary. The Megaports program to scan for nuclear 
or radiological materials in shipping containers was 
implemented March 2006 in Algeciras with respect to scanning 
import and export traffic. During meetings May 18, USG and 
host nation officials agreed on a plan to implement the 
transshipment (ship to ship transfers) element of the 
Megaports program.  Assuming this plan is successfully 
implemented, it should serve as a model for higher-risk ports 
in preventing illegal nuclear and radiological materials 
hidden in transshipment containers from ever reaching US 
ports. End Summary. 
 
¶2.  (SBU) When the Megaports initiative in Algeciras went 
live in March, 2006 (see reftel), USG and host nation 
officials intended that both the export/import traffic as 
well as the transshipment traffic would be scanned.  One year 
later, only the export/import cargo, representing just 10 
percent of total port traffic, is being checked under the 
Algeciras Megaports program. During discussions the week of 
May 15, Maersk company - serving as both the Algeciras 
terminal operator as well as the major port shipping company 
- indicated to Department of Energy (DOE) and Mission 
officials that the implementation delay was due to factors 
beyond their control. Maersk cited insufficient customs 
staffing as well as pushback from local laborers, caused 
primarily by a perception that transshipment cargo scanning 
would result in lower productivity and hence lower pay. 
 
¶3. (SBU) Though Algeciras itself is not commonly believed to 
be a high risk port for shipments, the port's willingness in 
2004 to partner with the Megaports program as well as its 
unusually heavy flow of transshipment traffic (estimated at 
90%) made it an attractive port for testing out ways to scan 
transshipment containers. This type of scanning is 
logistically challenging given the sometimes quick timeframe 
in which cargo must be offloaded from one ship onto its 
connecting ship. Megaports is currently being implemented in 
a select few ports world-wide though primarily for 
export/import traffic. 
 
¶4. (SBU) When Embassy and DOE officials met with Spanish 
customs enforcement on May 18, the Spanish customs team led 
by Ignacio Gonzalez Garcia resolved to look into increasing 
staffing to support the program. Gonzalez Garcia also agreed 
to work with Maersk terminal operator to resolve 
implementation issues brought on by labor pressures. The 
local labor pushback, Gonzalez Garcia argued, could be 
addressed by beginning implementation on a limited scope - 
scanning a lower number of containers than originally 
planned.  Once local labor realized that productivity would 
not be affected, then the scanning program could be expanded 
to its full scope. Maersk, having originally suggested this 
idea in previous meetings, would be amenable to implementing 
this limited plan. 
 
¶5. (SBU) Comment: Expansion of Megaports to Barcelona and 
Valencia is on the agenda for the future.  DOE's willingness 
to move quickly on this expansion will depend in part upon 
the successful implementation of the Algeciras transshipment 
plan.  Successful implementation of this initiative is a 
priority for the Embassy, particularly given the benefits and 
"lessons learned" it may impart when Megaports expands to 
other ports world-wide that have shipments going to the US. 
 
 
 
 
 
 
 
 
 
AGUIRRE